01-29-2022, 08:46 AM
(01-15-2022, 09:56 AM)fenders53 Wrote: EOG has had a remarkable run. It's my opinion PE's are fairly meaningless for commodity based stocks. When the current earnings are horrible, the shares crash and the PE is still sky high. And that is when the shares are actually a good value. Fast forward to this year. They are printing money now, PEs will remain low even as the shares rise. If you load up at the top of the cycle you will wish you had not.
That was NOT intended to be EOG pessimism. I own a lot of shares. They will have a wonderfully profitable year in my opinion. They may even pass out another special dividend. Maybe this is a super cycle for oil that last for five years. But it probably isn't, and buying shares after the stock already ran 300% is not prudent.
Pull up a 25 year chart on any major oil stock. It's pretty clear we need to trim rather than ride it back down, when that time comes. Buy and hold oil worked for 80 years, then it didn't anymore.
I bought EOG at a 3.45% current yield. It has a most recent dividend increase of 82% and a 5 year DGR of 17%. Low debt. Profitable at $30 per barrel oil.
Still probably undervalued and has a Very Safe SSD dividend safety rating.
Buy and Monitor, that is my mantra.